Yu Uidong-Hong Namgi, Heated Debate Over National Pension Reform... "Government Passive vs. Ball in Parliament's Court"

[Image source=Yonhap News]

[Asia Economy Reporter Naju-seok] A heated debate took place between Acting Prime Minister and Deputy Prime Minister for Economy Hong Nam-ki and People Power Party lawmaker Yoo Ui-dong over the reform of the National Pension Service. Regarding measures related to the depletion of the National Pension, Lawmaker Yoo criticized the government for a passive response, while Acting Prime Minister Hong countered that discussions in the National Assembly have not progressed.

On the 21st, Lawmaker Yoo stated during a government questioning session at the National Assembly, "According to the government's December 2018 projection, the National Pension is expected to be depleted by 2057," adding, "In the 2nd and 3rd projections, it was 2060; in the 4th, 2057; and according to the National Assembly Budget Office's analysis, it is moving forward to 2054. Considering the recent serious low birthrate, aging population, and the economic situation caused by COVID-19, there is a strong possibility that the depletion date will be brought forward even more."

In particular, Lawmaker Yoo raised concerns that according to the 2088 fiscal forecast, the cumulative deficit of the National Pension would reach 1,700 trillion won. In response, Acting Prime Minister Hong said, "That would be the case if no measures were taken," and added, "The government has created and presented four alternatives, and now the ball is in the National Assembly's court."

Regarding this, Lawmaker Yoo said, "The most proactive plan is to maintain the current system," and added, "Even though the cumulative deficit would be 1,700 trillion won if nothing is done, such a plan was submitted to the National Assembly." He then asked, "If the public wants to maintain the current system, should the system be kept as is?"

Acting Prime Minister Hong replied, "Maintaining the current system was presented for comparison with other alternatives," and added, "The other three alternatives involve changing the replacement rate and contribution rate, so a choice can be made among them."

During the exchange, as Acting Prime Minister Hong actively defended his position, Lawmaker Yoo asked, "You didn't act like this before," and questioned, "You said you would run for governor of Gangwon Province next year; is that true?" To this, Acting Prime Minister Hong responded, "I was questioned about the National Pension reform plan, and I did so because the public needs to know the facts accurately."

This content was produced with the assistance of AI translation services.